EMERGING BRANDS: A brand is born

Although branding is far from an exact science, there are some rules one should follow when launching a product. Key industry players impart words of wisdom on the matter to Alexis Hercules

Launching a brand can be a daunting task. Like a baby, you’ve given it all you can during its development. You have nurtured it, watched it grow, prepared it to the best of your abilities using what you know of the world that it is about to go into. Now the time has come to let it run free, hopefully to become stronger, prosper and spawn offspring (or, rather, line extensions) for itself. But once free to roam there are the fears. Will it sink without a trace, neglected and unloved? Or, will it be the next big thing, a buzzword on the lips of trendsetters across the country? Or even, depending on your target market of course, chatted about with excited admiration by connoisseurs?

Perhaps a slick advertising campaign will make it the immediate, subliminal drink of choice for those entering a bar.
Or, with budget constraints in mind, maybe every step and developmental stage has to be planned with exquisite care, relying on a quality product and word of mouth from a public increasingly eager to try something new, for yours to succeed and eventually become a household name.

How could the drinks business launch and build a brand successfully in the UK? What kind of research would we need to do, and what should we be looking at in terms of a target market – on-trade, off-trade, both? What are the best examples of recent launches and brand builds in the UK? Knowledge of this could provide a very useful do’s and don’ts list, and something of a model to follow.

As you can see, it’s a potential minefield. If the drinks business was intending to launch its own brand any time soon, it would need to perform a thorough investigation first, getting the opinions of some industry insiders who had already been there and done it, so to speak. With this in mind, I put my questions to those in the know.

Anne Vallejo, PR director, Marqués de Cáceres
“The establishment of a new brand in any market is a gradual process, based on a long-term commercial policy and commitment involving a lot of basic and integral work where no details can be left to chance. It is very difficult and expensive to create a new brand these days. In a crowded market, where competition is rife, new brands have to work
hard at differentiating their respective values.

“A lot depends on the sectors of the market that you are targeting; off-trade or on-trade or both, hence the choice of distributor – one or more depending on the areas to be covered.

“The majority of sales in the off-trade are channelled through the supermarkets that are price-driven, whereas the on-trade is a sector where good value and higher priced brands can be developed. Then there are the specialist wine chains that seek points of difference across a wider price range and which offer potential for brands prices at various price levels.

“In order to develop and consolidate a serious brand you must have high quality standards and consistency in quality and prices. In our case, we distribute our production in line with annual reservations for every client. This allows us to plan ahead on a long-term basis and to age our wines adequately in barrel and especially in bottle. We have four to five years of our annual sales in stock at the bodega; in this way we only release our wines when we consider that they are ready for drinking, and so our quality standards are maintained year after year.

“Combined with a profound knowledge of various distribution channels, a long-term sales policy is vital in order to maintain the brand’s image and credibility. As well as this, there must be a fair positioning of the brand on the market versus its competitors.

“A good presentation of the wine, in our case, and an excellent service to customers are both important aspects for anyone seriously trying to maintain a brand once launched. The labelling should help the consumer to correctly identify the style and origin of the wine, and the consumer should be made aware of what makes your wine brand different. This could include the background and history, culture, team commitment behind the brand, the marriage of food and wine and the values that the brand confers.

“Once your brand has launched, a well-defined and effective marketing strategy is of the utmost importance. Advertising, tastings, PR events and visits will all be necessary if your new brand is not to fall into the category of here today, gone tomorrow.

"Overall, you need to have a long-term commitment and a great deal of effort and patience.”

Carlos Latas, export director, Bodegas Paternina
“In the last couple of years we have seen some successful stories in our business. I think that the most important aspect is that anyone who wants to launch and build a successful brand first needs a good idea, and then the necessary money to develop it.

“It sounds stupid, but that is the reality. As soon as you have this idea and the resources, you must perform market research in order to check if your proposed consumers will accept and embrace the new product. This research will cover such things as presentations and different potential names.

“After this you have to fix a price according to the target and then, the final step, embark upon a detailed and thorough launching programme.

“As soon as you have established who your consumers are going to be, you have to find your partner in the market. Some distributors are strong in the on-trade, others in the off-trade. It is very important to decide with confidence and choose those who will be responsible for managing the product once it is in the market.

“When it comes to highly successful brand builds, three spring to mind from three different sectors. For spirits I would say Absolut, for wine it would be Casillero del Diablo, and for other drinks it would have to be Red Bull."

Michelle Beck, marketing manager, Australian Vintage
“When launching a brand you have to know your consumer, as one size no longer fits all. Today’s consumer is more savvy and demanding than ever before, and you must give the people what they want. Packaging is not enough, seduce them with your product as well and you are well on the way to building a base of loyal consumers.

“You must also determine the personality and values of your brand. Once this is done, you can then build everything you do on this platform. Building a brand is all about giving consumers a real reason to come to you, and it’s important to choose which segment of the market you wish to operate in and be consistent in the way your brand values are communicated.

“Insight is the crucial first step in determining where the gaps in the market are, and will allow you to launch a product that is relevant. Again, this revolves around knowing what your consumer actually wants, which is often not what you think they want.

“Focus groups are a great way of tapping into consumer impressions, and will often reveal insights that have previously been unconsidered by even the most diligent.

“A fairly recent successful brand launch that immediately springs to mind is that of Gü chocolate puds. They spotted an isolated gap in the market and a great product that ticked all the right boxes was produced, and the obvious innovation element was quickly recognised and opened the doors to gain distribution.

“With regards to drinks brands, Hendricks Gin does a great job of staying true to its core values, and the way the brand personality is communicated is always innovative.”

Guy Lawrence, global brand director, Cazadores
“Cazadores was introduced to European consumers for the first time when it launched in the UK 12 months ago with a new global advertising campaign, new-look premium packaging and an education programme aimed to educate consumers on the premium Tequila category.

“In markets like the UK the focus is very much on the top end of the on-trade; the very best bars and restaurants. We are nurturing these markets by running a bartender-training programme, which helps to raise awareness and develop an appreciation of how a 100% Agave Tequila like Cazadores is created and how it is best served.

“The trend for trading up has spread across all spirit categories as more and more discerning consumers seek out the finest spirits created using the very best ingredients.”

Sophie Bowers, marketing controller, Bacardi UK
“To launch a brand, you must truly understand your target consumer. What are their passions and dreams? Also, what in their day-to-day lifestyle is important to you and your brand, and how can your knowledge of this affect why and how you target them specifically?

“Through understanding you can develop your brand so that it connects deeply with your target consumer. Above all, for real standout and in order to increase your chances of launching a brand that will grow, you must make it unique.

“When performing your research, you must do as much as possible that will allow you to understand the consumer. This could take various qualitative and quantitative forms, but the end result must be that you feel your consumer and therefore see your brand through their eyes. In this way, everything you do will be made as engaging as possible. When it comes to distribution everything depends on all the elements of the mix, as well as your objectives.

“Grey Goose was an exceptional brand build in the UK. The ‘World’s Best Tasting Vodka’ accolade appeals strongly to our target consumer and the brand was at the heart of the bottle-to-table growth within high-end clubs. With Grey Goose we have also focused on supporting charities, in particular the Elton John AIDS Foundation, for which it has raised significant sums through various activities."

Steve Howard, managing director, ZGM UK
“Decide who your consumer is and make sure you target them really closely. If you make assumptions about who your consumers are, you will be wrong more times than not. You should do open and honest research. If you do it openly and honestly you can take some of the guesswork out of it.

“As far as the customer goes, you really need to know what angle your product is going to take in the category. It’s about adding value rather than just being better than what is already on the shelf.    

“Consumers are becoming more educated, and I think provenance for a product, where it comes from, where it’s credibility lies, what’s special about it, is becoming more and more important.

“Big branded companies in the beer and spirits industry usually have huge marketing budgets and big spends. There isn’t so much of that in the wine industry, so you’ve actually got to be a bit smarter.

“If you’re going into what you might call a cheap and cheerful unit on display area, you’re not going to add enough value to do a lot of research up front. You do have to do both qualitative and quantitative research to see what the value of the market could be, and what consumers are really looking for.

“We will go to some focus groups with label designs, names, bottles and packaging; then with those responses we will do some further work on both the packaging and the wine. We’ll ask what kind of wine they like and how they like it, and follow this up with a more specific focus group at the end.

“You have to take a longer term view with what you spend at this stage. It’s not a case of getting the money back in year one; you’ve got to be looking at three years plus.”

Matthew Dickinson, commercial director, Thierry’s
“You have to understand your consumer and their reason to buy. So many wine brands are launched without either any real consumer insight or research. Make it different, special and give it standout.

“You must ensure that you have a consistent, qualitative source of supply. It sounds easy but the amount of times people turn around and say ‘brand X doesn’t taste as good as it used to’, or the amount of times procurement teams are sent into panic because producer Y can’t deliver the right goods on time at the right price, are numerous.

“A lot of people are talking about trade-up at the moment, but my instinct tells me that today’s consumer is looking more than ever for great value and that means they are reluctant to spend more given the nervousness in the economy. Wine is not a profitable sector at the best of times, and if ‘trade-up’ or ‘premiumisation’ are basically different ways of saying
‘we need to make more margin’, then the consumer won’t buy it. Build inherent value into your brand before your start. Good examples of this would be Pearly Bay and El Prado.

“I liked Campo Viejo’s assault on the Spanish category. I also think Gallo do a great job and have provenance and heritage, as well as the family message that baffles major conglomerates when they try to do branded wine. Stormhoek were genuinely innovative although spent too much being so. Outside of wine, Cobra, Innocent, Ecover, Riverford veg boxes, and Waitrose are all brands with great credentials and integrity; moral brands that lack cynical marketing.

“When researching I would go for hall tests, focus groups and in-depth work with Nielsen, Mintel, TNS and Wine Intelligence. I would also talk to retailers who have the best understanding of their customers through loyalty cards or their own in-house research.

“For distribution you must have a strategy for each channel you want to play in. Some brands have built successfully from cash and carries, independents – brands such as Blossom Hill, Gallo and JP Chenet – others have branched out after starting with the multiple grocers. But selective distribution is essential depending on what you want to achieve. Since most people want volume and market share, selling into the multiple chains is critical; if it is premium positioning you’re after then top restaurants, clubs and the likes of Harrods and Fortnums will be the target.”

Jane Lumby, design director, Chalié Richards
“You have to know your market and make sure you research fully who your target market is, and what they want from a brand. You must also know your competition, and make sure you are better. Have a USP and a story.

“One World was developed and designed by Chalié Richards in full collaboration with its target market. The whole concept for the brand launch was developed around the simple fact that consumers’ palates develop through a cycle from PPS and cider to, eventually, wine. There is a significant gap for a wine brand to fill this transitional period between easy drinking sweeter PPS-style drinks and more serious wine.

“Consumer research showed that consumers of everyday wine know little about wine regions, grapes and differences between countries of origin. What is really important to them are the circumstances in which they enjoy wine, the people they drink wine with and the places they drink it.

“Our research focused on understanding how and why consumers select wine and explored aspects of marketing a wine brand. The results highlighted that consumers currently find it confusing and difficult to purchase wine. To make it easier they look for points of recognition, such as a familiar or recognisable brand name, label or icon. They then look for familiar grape varieties and the country of origin.

“The appeal of the label is an important deciding factor in purchasing wine. The key things consumers look for are contemporary designs, quality, credibility, approachability and information.

“Our distribution strategy is to target the wholesale cash and carry sector, leading to on trade and convenience listings. The One World consumer will be drinking in pubs and buying wine in convenience stores.” 

Keith Lay, marketing director,  Ehrmanns
“You need to make sure your product has a clear point of difference. Do you have a sense of why people would buy it? It sounds like an obvious thing to say, but with wine you’ve got thousands of wineries and hundreds of thousands of wines. These days they are all made to a reasonable standard and all are trying to get into the market.

“Today, just saying ‘here’s a good wine from Argentina’ is no longer a good enough proposition. You need to have a story, rather than just ‘here’s another Malbec for the market’.

“Whether a consumer is buying wine or buying a car, they want to be able to talk about it. That’s really want brands are, they are not one-dimensional, they’ve got to have layers and it has to have something to make it stand out.

“Castillo de Calatrava has been so successful, the fastest growing Spanish brand in the UK, because it provides many of the same things out of La Mancha that Rioja provides, things like packaging and wine styles, but it can do it at a more competitive price positioning. So that’s a good point of difference essentially, and good value.

“We accept and expect that for a brand to be successful in the UK it’s got to be promotable, so an important part of a launch is finding a way that you can do that.

“One of the great things about La Mancha is the scale of the operation. The availability of quality grapes and the temperature means that harvests are very consistent, so if you are building a brand you can plan for the long term more reliably.

“We developed Calatrava about four years ago with a specific criteria. We analysed potential consumer groups and defined a marketing strategy. Using that, as well as our previous experience, we found that people who bought Spanish wine were looking for certain things.

“Clearly Rioja as a brand was very strong in itself, but also beyond that there were expectations about packaging and wine styles. The wiring on Calatrava is typically Spanish, normally put on by hand. It suggests that there is going to be a certain kind of wine in the bottle.

“One of the difficulties with wine per se is that harvests go up and down. Very often you’ll see brands come in and then suddenly, after a lot of promotion, a lot of share, they then disappear because they can’t actually afford to sustain it, or potentially they haven’t got the wine to sustain it.

“A lot of the groundwork we do comes from direct contact with consumers at big wine events. If you’re standing by a counter with 30 wines, people come and you can see what they ask to try. Sometimes it might be their personal knowledge, or preference for a certain varietal, but very often issues like packaging come into play.

“Experience is also important. We launched a brand called Inferno in 2001, the idea at the time was to do something out of Spain that was quite modern, fashionable, and also aimed at women. Something like the Black Magic strategy applied to wine.

“But, it didn’t work, and it didn’t work because there was a disconnection between the packaging and the wine.

“It’s about expectations. The consumer has a certain expectation, there’s the bottle and it delivers well. If you have disconnect you won’t get the repeat purchase.

“In short, don’t hide your mistakes, learn from them.”  

db © July 2008